Arcos Dorados Plans Tender, New Bond

Arcos Dorados Plans Tender, New Bond

September 12, 2013

Arcos Dorados has launched a tender and exchange offer targeting any and all of its 7.500% 2019 bonds, it says, to be funded by a newly issued 6.625% 2023 bonds. The world’s largest McDonald’s franchisee is offering holders $1,092.50 per $1,000.00 principal through a September 23 early deadline, and $1,062.50 per $1,000.00 by the final October 7 deadline. Holders may exchange for cash or for new 2023 bonds. The new notes will be senior unsecured indebtedness and will rank equally with all of the company's other existing and future senior unsecured indebtedness. Arcos is heading out for fixed-income investor meetings in Santiago, London, Lima, Boston, New York and the West Coast through September 23, with the transaction likely to follow. The Ba2/BBB minus rated issuer has mandated Bank of America Merrill Lynch, Citi and JP Morgan to act as joint dealer managers on the liability management exercise. The 2019 bond has $309m outstanding.

Arcos Dorados has launched a tender and exchange offer targeting any and all of its 7.500% 2019 bonds, it says, to be funded by a newly issued 6.625% 2023 bonds. The world’s largest McDonald’s franchisee is offering holders $1,092.50 per $1,000.00 principal through a September 23 early deadline, and $1,062.50 per $1,000.00 by the final October 7 deadline. Holders may exchange for cash or for new 2023 bonds. The new notes will be senior unsecured indebtedness and will rank equally with all of the